China Mobile’s share price has eased after an initial surge following its listing on the Shanghai Stock Exchange.
As the world’s largest mobile operator by subscriber numbers, China Mobile was previously listed on the New York Stock Exchange (NYSE) but was removed after the U.S. government imposed restrictions on investments in certain Chinese technology firms.
Shares rose by about 8.5 percent above the offering price of 57.58 yuan at the market open, but within several hours the price had retreated closer to the initial offering level.
NYSE trading for China Mobile stopped on 11 January 2021 and the company was officially delisted in May 2021 after a failed appeal to reverse the exchange’s decision.
China Mobile, along with China Telecom and China Unicom, was delisted after the U.S. Department of Defense concluded the carriers had ties to Chinese military and security forces.
While the Biden administration has generally adopted a more diplomatic tone toward Beijing compared with its predecessor, it has continued to enforce stringent measures and maintain sanctions on a range of contentious issues. These include concerns over the treatment of Uyghur Muslims in Xinjiang, military activity around Taiwan, the Hong Kong national security law, pandemic-related disputes, trade conflicts, and cyber security allegations.
Last month, ride‑hailing group DiDi Global said it would delist from the NYSE and pursue a listing in Hong Kong after regulatory pressure in China.
Chinese regulators targeted DiDi following its $4.4 billion U.S. IPO, ordering app stores in China to temporarily remove the company’s apps as part of a wider review.
A successful Shanghai listing for China Mobile will be important for Beijing as it seeks to encourage more domestic companies to list on local exchanges instead of overseas markets.
(Photo by Li Yang on Unsplash)
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